SEC to Issue Statement with IFRS Proposal
The Securities and Exchange Commission (“SEC”) plans to publish a statement that affirms U.S. support for international accounting standards convergence, and the SEC’s expectation that U.S. companies’ financial statements will continue to be prepared under U.S. GAAP and not International Financial Reporting Standards (IFRS). Announced by SEC Chief Accountant James Schnurr at the SEC Speaks conference, the statement is likely to be included in a proposal that would allow U.S. companies to voluntarily supplement IFRS information with U.S. GAAP financial statements. No timetable has been set for the publication of the proposal and accompanying statement. More on the SEC’s IFRS statement can be. Read More.
IASB Establishes New Process for IFRS for SMEs
Earlier this month, the International Accounting Standards Board (“IASB”) announced a new process for stakeholders to submit issues associated with the International Financial Reporting Standards for Small and Medium-sized Entities (IFRS for SMEs). The new process is the result of a review completed last year and asks individuals or companies to email a description of the implementation issue to the SME Implementation Group (SMEIG) . Upon receiving the submitted issue, the IASB staff will perform the following actions: If the IASB staff believes the issue could meet the criteria under paragraph 15 of the Terms of Reference and Operating Procedures for the SMEIG, the issue will be referred to the SMEIG for consideration regarding. Read More.
Upcoming FASB Proposal Offers Simplified Goodwill Impairment Test
In late March, the Financial Accounting Standards Board (“FASB”) is expected to release a proposal that shortens the goodwill impairment test public companies perform after an acquisition. The upcoming proposal would eliminate the second part of the two-step impairment test that calculates the decreased value amount of acquired goodwill. A one-step process would bring U.S. GAAP more in line with International Financial Reporting Standards and address complaints that the calculation of goodwill impairment is an expensive and unnecessary process. The FASB wants to issue the proposal for a comment period of 60 days.
Will New Revenue Standards on Customer Contracts Impact You?
By: Sara Crabtree , Manager, Government Contractor Services Group U.S. Generally Accepted Accounting Principles (GAAP), as codified in the Accounting Standards Codification, does not provide one, all-inclusive general standard on revenue recognition that applies across the board to all transactions and entities. Companies follow various subtopics in the Codification or industry specific standards to determine the proper procedures for recognizing revenue. That will all change for contracts with customers once new revenue recognition standards go into effect. In May 2014, the International Accounting Standards Board (“IASB”) and Financial Accounting Standards Board (“FASB”) issued new requirements on recognizing revenue that derives from customer-based. Read More.
Topics: Accounting Standards Codification, Accounting Standards Update "ASU", Financial Accounting Standards Board "FASB", International Accounting Standards Board "IASB", International Financial Reporting Standards "IFRS", Topic 606, U.S. GAAP
FASB Financial Instruments Standard Issued
After spending the past decade working to simplify the accounting for financial instruments, the Financial Accounting Standards Board (“FASB”) has issued its long-anticipated guidance, Accounting Standards Update (ASU) No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. FASB Chairman Russell Golden said the new standard will provide more useful information to financial statement users, and improves the accounting model to better address economic complexities. When the project initially started, the FASB attempted to overhaul the accounting for financial instruments. Things took a turn after the 2008 financial crisis, and the final standard. Read More.
FASB and IASB Discuss Changes to Principal versus Agent Considerations
During its joint meeting on December 16th, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) redeliberated proposed amendments to the principal versus agent guidance. The meeting was in response to feedback received on the boards’ exposure drafts, FASB Proposed Accounting Standards Update, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), and IASB Exposure Draft, Clarifications to IFRS 15. During redeliberations, the FASB and IASB reached tentative decisions in regard to the following: Principle for determining whether an entity is a principal or an agent; Unit of account for. Read More.